B2B Loyalty takes a COVID hit

May 29, 2020

As expected, businesses have reduced their B2B marketing spend during the COVID crisis. The average stated reduction is 62% of all global B2B marketing agencies; highest in the UK, South Korea and Spain; lowest in the US and Italy. While the actual amount of the reduction is unknown, spending cutbacks are happening across the board.

Optimism about businesses rebounding within the next 2-3 months appears to be softening. In McKinsey’s April 1 survey, 55% of all global B2B marketing companies cited optimism about the near-term future. By April 27^th, the optimism scale had slipped to 50%. The longer the crisis lingers, the less likely it is to feel positive about the second half of the year.

Other findings reveal changes in tactics, especially among the SMEs. Digital engagement is growing on all fronts — web support, customer service, and e-Commerce — and 65% of B2B marketers report that the “new” tactics are just as effective or more effective than legacy approaches.

While the McKinsey research may seem obvious to some, the report carries strong implications for B2B marketing: 

• Shifts in spending towards customers and away from prospects
• Retention objectives to gain significant traction, especially among loyal customers
• Revised loyalty designs among channel, sales force, and customer audiences
• Expect an entirely new round of B2B loyalty programs with digital technologies and engagement mechanisms at the forefront.

The study was conducted at the end of April among 3,700 B2B decision makers in 11 countries.